EGX loses 2.7B EGP hammered by selling pressures
The Egyptian Exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) extended its negative performance Wednesday, and market capitalization lost roughly 2.7 billion EGP ($377.49 million), hurt by selling pressures for two consecutive sessions.

The benchmark index EGX30 fell by 0.13 percent to hit 9,578 points, compared to 9,600 points Tuesday. The small and mid-cap index EGX70 dropped 2.39 percent, registering 624 points, down from 639 points last session and the broader index EGX100 also decreased by 1.42 percent to reach 1,138 points.

Market capitalization amounted to 521.1 billion EGP, compared to 523.8 billion EGP in its last session.

“The mid and small caps index (EGX 70) failed to breach the major resistance level of 666 points and faced the overwhelming selling pressures which drove most stocks to break below their supports,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.

On the other hand, the high bids for Suez Canal investment certificates and the tax free benefits for individuals and corporations, compared with the potential in the stock market is the major reason for the 2-day decline, he added.

“We should take into account many factors to measure the risks, such as the Suez Canal certificates, capital gains tax and the end of the third quarter,” Feky said.

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